Hey @StevieWonder, both of those are the protocol working as intended — I suggest you give the spec a read.
A signer went offline when a tBTC redemption was requested. The redeeming user requested a liquidation, and got their funds from the signer’s bond. If a situation like this happened with renBTC or WBTC, the user would be out of luck and need to seek legal recourse.
You’re welcome to read more about failed setups in the spec as well… but I’m not really sure what they have to do with Curve?
I appreciate that this stuff is new, but there’s nothing scary going on here. Custodial risk is on the signers, where it should be.